Income tax sharing plans phenomenal, says mayor

New powers from Westminster including a share of the money raised through income tax for the first time, were a "sea change" for the West Midlands in how the region could shape its own future, according to its mayor.

Prime Minster Andy Burnham announced plans on Friday to give England's regional mayors greater control over local funding and services.

Richard Parker said having more money which would stay in the region would allow local leaders to respond more quickly to the area's needs and invest in long-term economic growth.

"This is phenomenal. It really is a sea change, it's monumental," the West Midlands mayor said.

"The questions and the issues people raise with me are those that are really important to them in our communities and these freedoms will give me the ability to address those issues, with a bit more muscle and to do it quickly.

"Whether that's measures to improve cost-of-living issues, investing in our high streets and - one of my biggest priorities - investing in our young people so they can get jobs and build better careers here."

Dave Taylor, from Ryecroft Community Hub in Bloxwich, also welcomed the news.

"I would establish a green academy in Walsall… we could use this money to start a green academy, train local people to learn how to retrofit home," he said.

"That would save people a lot more money in the long term; we've got some of the most energy inefficient homes in Europe here in Walsall."

Under the proposals from Burnham, mayors of city regions in England would also be allowed to keep some of the money collected through business rates.

They would also gain greater control over housing, transport and skills, as part of the government's plans to devolve power away from Whitehall.

In what the news could mean for the West Midlands, Parker pointed to a series of major regeneration projects already taking place, including plans for an £11bn sports quarter, alongside ambitions to deliver 20,000 new homes and create 50,000 jobs.

"We're on a good trajectory here across this region," the mayor said.

"We've exceeded over the last 12 months every target Whitehall has set us.

"We've got plans to create 1000s of new jobs in the Black Country through the automotive and defence sectors, and we've got three investment zones."

The government said more details, including the proportion of tax revenue regional authorities will retain, will be announced in the autumn Budget.

English metro mayors are expected to start retaining some revenue from business rates from April 2027, and receive a portion of income tax from April 2028.

However, opposition parties have questioned the plans, arguing they lack detail and warning that areas with weaker economies could receive less funding under the new system.

Conservative shadow chancellor Sir Mel Stride criticised announcement as "very short on the detail" while the Liberal Democrats warned the plans risked "creating a postcode lottery".

Reform UK meanwhile called for Burnham to "fully devolve the power to stop the housing of illegal migrants in local communities by the Home Office".

The government rejected concerns, saying the reforms were meant to make sure more of the taxes raised in a community were spent in that community, giving local leaders greater control over decisions affecting their areas.

Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, welcomed the tax share plans but said the whole of Warwickshire needed to see the benefit.

"Right now, Coventry is part of the West Midlands Combined Authority but Warwickshire – which is soon to be split into councils for the north and the south – is at a different stage of devolution.

"The government must find a way to ensure that more devolved powers and funding reach areas such as Warwickshire as quickly as possible if the prime minister wants to realise his ambition of 'good growth in every postcode'."

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